The Financial Evaluation Of Cross Rolling Reconstruction Project In Wide And Middle Plate Mill In Shaoguan Iron And Steel Co/Ltd

The evaluation is an extension of the feasibility research and project management workafter the investment project completed. It is an indispensable important means of the projectmanagement. It has the very vital significance for improving and perfecting the level of theproject decision-making, and raising investment benefit.The cross rolling transformation project is one of the important investment projectswhich has been completed and put into production in wide plate mill of SGIS. It is in order tosolve the two problems in the production process of wide plate mill. On one hand, it is tosolve the bottlenecks in production, make rolling process optimization, and improve theproduction efficiency and production. On the other hand, it is to improve the quality ofproducts, and promote product development. The project is carried out a detailed feasibilitystudy before the project implemented. But after the project is completed, many conditions offeasibility study change with the change of the market.Apparently, the old income forecastsimply do not reflect the current operation and profitability, The phenomenon of heavyconstruction and light management is still exist in SGIS. More investment projects still don’ttake evaluation after the project completed.In this paper, some financial evaluations are adopted for the cross rolling transformationproject, which fill up the blank of the management. First, it introduced some theory of thefinancial evaluation and the general situation of the cross rolling project. Second, through thefinancial evaluation theory, it built an evaluation system of financial for the cross rollingtransformation project. It takes a detailed financial evaluation about before and after theproject completed by comparison. Third, it finds out the different reasons for the financialevaluation, and puts forward the improvement measures.The conclusion of this thesis is that it is necessary to carry out the transformation project.Due to the design and construction of the project are more successful, various technical andeconomic indicators which are close to or reach the requirement of the preliminary designhave a larger upgrade after this project put into operation, and obtain obvious economicbenefits. The transformation project has basically achieved the expected goal. It has the veryvital significance for adjusting product structure, improving product quality and yield,reducing production cost and improving the economic benefit after the project completed. Butbecause the market forecast and the investment budget are not accurate enough and marketchange unpredictably, all that lead to a larger gap of the financial evaluation indexes. Thispaper is not only finding out the reasons for the large changes of financial evaluation index, but also putting forward a good proposal for the project of SGIS in the end. On one hand, tofurther establish the management system of the evaluation after the project completed, and topay attention to strengthening the feedback function of the project appraisal. On the otherhand, to reduce procurement costs of raw materials, enhance the quality of products,strengthen management, and reduce efficiency. Especially focus on the index of the plateyield, in order to raise economic benefits.